Ashford University ACC 612 Prior to beginning work on this discussion forum, read Chapter 1 of your course text

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Ashford University ACC 612

Prior to beginning work on this discussion forum, read Chapter 1 of your course text. Review the Chapter 1: Intercorporate Acquisitions and Investments in Other Entities PowerPoint presentation and the weekly lecture.

Based on this weeks reading and weekly lecture:

• Explain how Goodwill is computed.
• Does the fair value of assets versus the book value have any effect on the recognition of goodwill? Provide an example with the associated journal entry.
• Will the amount of Goodwill recognized change based upon the percent of the company purchased. Can the amount be the same?
• In a percent acquisition, what would cause the amount of Goodwill to be non-proportional? Provide examples to support your answer.
• Discuss the differences between goodwill and a bargain purchase. Provide an example to support your conclusion.

Discuss the treatment of goodwill that exists on a subsidiary’s books.